Economic & Business Laws — United Kingdom

Economic and Business Laws for Immigrants to the United Kingdom

*Note: UK immigration and business law changed significantly post-Brexit (since January 2021) and continues to evolve. Figures below reflect rules as generally understood through 2024–2025. Always verify current details via GOV.UK, UKVI, or a qualified immigration solicitor/OISC-registered adviser before making decisions.*

Right to Work: Visa Categories and Their Work Permissions

Skilled Worker Visa

• Requires sponsorship from a Home Office-licensed employer
• Tied to a specific job, employer, and salary threshold (minimum generally £38,700/year or the "going rate" for the occupation, with some exceptions for health/education roles and "new entrants")
• Can switch employers but requires a new Certificate of Sponsorship and possibly a new visa application
• Limited permission for secondary employment (up to 20 hours/week in same or shortage occupation)

Health and Care Worker Visa

• Subset of Skilled Worker route with lower fees, no Immigration Health Surcharge
• Tied to NHS, social care, or approved healthcare employers

Global Talent Visa

• No employer sponsorship needed
• Full right to work, self-employment, and business ownership
• For leaders/potential leaders in academia, arts, digital technology, research

Student Visa

• Right to work up to 20 hours/week during term time (varies by institution level)
• Full-time work permitted during official holidays
• Cannot be self-employed or engage in business activity as primary purpose

Graduate Visa

• 2-year (3-year for PhD) unsponsored work permission after completing UK degree
• Full right to work for any employer, including self-employment

Family Visas (Spouse/Partner)

• Full right to work, no restrictions
• No sponsorship required

Innovator Founder Visa (replaced Innovator visa in 2023)

• For those starting an innovative, viable, scalable business
• Requires endorsement from approved endorsing body
• No minimum investment requirement (changed from previous £50,000 rule)

Visitor Visa

• No right to work – strictly prohibited from employment or self-employment
• Limited "permitted activities" only (meetings, conferences)

Refugee/Asylum Status

• Full right to work once granted refugee status
• Asylum seekers generally cannot work while claim is pending (limited exception after 12 months, restricted to Shortage Occupation List)

Starting a Business as a Foreign National

Visa Routes for Entrepreneurs

• Innovator Founder Visa: No investment minimum, requires business plan endorsement, must show business is genuine, innovative, viable, scalable
• Global Talent Visa: Allows business creation for qualified individuals
• Skilled Worker (self-sponsorship): Some entrepreneurs establish their own sponsoring company, though Home Office scrutinizes genuine trading requirements

Company Formation Requirements

• No UK residency required to register a company with Companies House
• £12 online registration fee (as of 2024, may increase)
• Requires UK registered office address (can use formation agent/virtual office)
• At least one director (no nationality restriction)
• Must file annual accounts and confirmation statements

Regulatory Considerations

• HMRC registration required within 3 months of starting self-employment or forming a company
• VAT registration mandatory if turnover exceeds £90,000/year (2024 threshold)
• Certain sectors require specific licenses (financial services via FCA, food businesses via local authority, etc.)

Self-Employment Restrictions by Visa

• Most work visas (Skilled Worker, Health & Care) prohibit self-employment or setting up as a sole trader
• Only specific routes (Innovator Founder, Global Talent, settled status, family visas) permit self-employment

Foreign Investment Restrictions

National Security and Investment Act 2021 (NSIA)

• Grants government power to scrutinize/block investments in 17 sensitive sectors including:
• Defence, critical infrastructure, energy, AI, quantum technology, transport, data infrastructure
• Mandatory notification required for qualifying acquisitions in these sectors
• No nationality-based restriction, but heightened scrutiny for investments linked to certain countries (particularly China, Russia)

Sector-Specific Restrictions

• Broadcasting/media: Ofcom licensing requirements, some limits on foreign control
• Financial services: FCA/PRA authorization required regardless of nationality
• Defence: Export control licensing under Export Control Act 2002

General Openness

• UK maintains largely open FDI regime outside flagged sectors
• No general restriction on foreign ownership of UK companies
• Golden visa/Investor visa route was closed in February 2022 due to money laundering concerns

Property Ownership Rights for Non-Citizens

General Rule

• No restriction on foreign nationals purchasing UK property (residential or commercial)
• No residency or citizenship requirement to buy freehold or leasehold property
• This applies regardless of immigration status

Additional Costs for Non-Residents

• Stamp Duty Land Tax (SDLT) surcharge: 2% additional surcharge for non-UK residents purchasing residential property in England/Northern Ireland (on top of standard rates and any additional-property surcharge)
• Non-resident defined as spending fewer than 183 days in UK in the 12 months before purchase

Registration Requirements

• Register of Overseas Entities (2022): Overseas entities owning UK property must register beneficial owners with Companies House
• Aimed at increasing transparency, particularly for property held via offshore companies

Mortgage Access

• Non-residents/foreign nationals face stricter lending criteria
• Often require larger deposits (25-40%)
• Specialist "expat mortgage" lenders may be needed if no UK credit history

Banking Access for New Immigrants

Opening a Bank Account

• No legal barrier based on immigration status, but banks require:
• Proof of identity (passport, BRP - Biometric Residence Permit, or eVisa)
• Proof of UK address (utility bill, tenancy agreement, sometimes a letter from employer/university)
• Many banks now accept digital confirmation via UKVI's "share code" system (post-2021 as physical BRPs phased out)

Practical Challenges

• New arrivals without UK address history often face account restrictions or basic account offerings only
• Basic Bank Accounts: Legally mandated by FCA for those who don't qualify for standard accounts; no overdraft, but allows receiving salary/paying bills
• Digital-only banks (Monzo, Revolut, Starling) often more accessible for newcomers, sometimes accepting passport + visa only

Credit History

• UK credit history starts from zero regardless of financial history abroad
• Building credit score important for future mortgages, loans, credit cards
• Being on the electoral roll (where eligible) helps credit profile

Labor Law Protections for Immigrant Workers

Universal Protections (Regardless of Immigration Status)

• National Minimum Wage/National Living Wage: Applies to all workers regardless of immigration status
• National Living Wage (23+): £11.44/hour (April 2024 rate)
• Working Time Regulations 1998: Max 48-hour average work week (opt-out possible), rest breaks, paid annual leave (5.6 weeks statutory minimum)
• Equality Act 2010: Protects against discrimination based on race, nationality, religion in employment
• Health and Safety at Work Act 1974: Applies to all workers

Sponsored Worker-Specific Protections

• Employers must pay at least the going rate for the role, not just minimum wage
• Cannot charge sponsored workers for the Certificate of Sponsorship or sponsor license costs (illegal under Immigration Rules)
• Employers must report to Home Office if sponsored worker's circumstances change (absences, role changes)

Illegal Working and Employer Sanctions

• Employers face civil penalties up to £60,000 per illegal worker (increased significantly in 2024) if right-to-work checks aren't properly conducted
• Workers found working illegally (breach of visa conditions) risk visa curtailment, removal, and future entry bans
• Right to Work Checks: Employers must verify via online checking service, physical documents, or Identity Service Provider (IDSP) for certain nationalities

Exploitation Protections

• Gangmasters and Labour Abuse Authority (GLAA): Licenses labor providers in high-risk sectors (agriculture, food processing, etc.) to prevent exploitation
• Modern Slavery Act 2015: Criminalizes forced labor, provides support routes (National Referral Mechanism) for victims, including those with irregular status
• Victims of modern slavery may receive discretionary leave to remain independent of their exploiter's immigration status

Trade Union Rights

• All workers, regardless of immigration status, have right to join trade unions (Trade Union and Labour Relations Act 1992)
• Undocumented workers technically retain some employment rights (e.g., to claim unpaid wages) though asserting these carries practical risk of immigration enforcement

Key Recommendations

• Verify visa work conditions directly on your Biometric Residence Permit, eVisa, or decision letter before starting any work or business activity
• Consult an OISC-registered immigration adviser or solicitor for visa-specific business/work questions—免费 government helplines can advise on general rules only
• Register with HMRC promptly if self-employed or starting a company to avoid penalties
• Check current thresholds annually: salary requirements, minimum wage, SDLT rates, and visa fees change frequently (often each April)
• Use GOV.UK's "Check a UK visa" and "Right to Work checking service" for official verification
• For business investment involving sensitive sectors, consult on NSIA notification requirements *before* completing transactions to avoid retrospective unwinding orders

More about immigrating to United Kingdom